Annual integrated report 2018

Emerging Markets delivered a mixed bag of results. The “melange” was influenced by sometimes uncertain economic environments and on a like-for-like basis (50% of South Africa’s bakery business was sold in April 2017) these businesses continue to deliver commendable results. Revenue dropped 3,1% to R18,7 billion (2017: R19,3 billion); and trading profit fell 6,7% to R1,0 billion (2017: R1,1 billion). Bidcorp Food Africa (BFA) delivered good results in tough economic conditions. Margin and expense management was excellent, with overall expenses growth well below inflation. Trading profit rose despite deflation in Bidfood (BF) and some parts of Chipkins Puratos (CP). South Africa’s listeriosis crisis had material effects on Crown Food Group (CFG). BF was impacted to a lesser extent. The commitment to relationship capital was showcased by the Chipkins Puratos JV and the launch of a further joint venture with Griffiths Foods to pursue opportunities in the QSR segment. Further development of relationship capital is in prospect as cooperation is being stepped up with international brand principals who are planning to expand their involvement in African markets. Intellectual capital is constantly reinforced, as evidenced by the launch of ecommerce initiatives at CFG and the continued success of BF’s online ordering system. Ongoing attention is given to manufactured capital and the review period witnessed investment in a new wet plant, replacement of delivery vehicles and further spending at the new KwaZulu-Natal distribution facility. Emerging Markets Chief executives Klaas Havenga Brent Varcoe Nedim Makzume Bidcorp Food Africa Bidfood SA Aktaes Turkey Johnny Kang John Morris Gabriel Abramovicz Angliss Asia Crown Food SA Bidfood Chile Hisham al Jamil Nigel Phillips Antonio Celso Dias Avelino Middle East Chipkins Puratos SA Irmãos Avelino Brazil Manufactured capital Financial capital ▼ 3,1% Revenue ▼ 6,7% Trading profit Own brand 15% of 2018 divisional revenue 2018 2017 0 10 5 15 20 18,7bn 19,3bn 2018 2017 0 1 2 1,0bn 1,1bn Product segmentation (%) 2018 2018 2017 Frozen 47 39 Chilled 22 25 Ambient 26 32 Non-food 5 4 Market segmentation (%) 2018 2018 2017 Logistics 0 0 Chain 39 28 Independent 55 59 Retail 6 13 Pictured: “Cooking With” a popular Bidfood SA own brand example Note: Financial and Manufactured Capital 2018 information presented above does not include Chipkins Puratos due to it being equity accounted from April 1 2017. 41 Bid Corporation Limited Annual integrated report 2018 This is Bidcorp Ifc – 13 Leadership review 14 – 23 Divisional reviews 24 – 47 ESG review 48 – 59 Financial statements 60 – ibc